This State Will Help You Pay Off Your Student Loans (Yes, Really)
You know Maine for the lobster shacks and picturesque lighthouses dotting its craggy coastlines. You may have also devoured a life-changing slice of the state’s famed blueberry pie (Maine produces the most wild blueberries in the world) or cut fresh tracks with your skis on an uncrowded mountain.
Now, for its next trick, the northernmost state is turning its charm up to a level 10 as it tries to convert visitors from doting tourists to permanent residents. Maine’s student loan program is offering unique incentives to help recent graduates tackle their student debt.
Yes, really.
While the state of Maine won’t actually cut a check directly to Sallie Mae, the state is offering a state tax incentive to offset your student loan payments.
In This Article
How Maine’s Student Loan Program Works
The Educational Opportunity Tax Credit was established as a means to retain graduates from Maine’s colleges and universities.
Today, the program has expanded and is known as the Student Loan Repayment Tax Credit (SLRTC). The SLRTC is part of Maine’s Job Creation through Educational Opportunity program, which was established in 2008. The program aims to provide an income tax credit for individual income taxpayers in Maine who are making eligible student loan payments on loans obtained to earn an associate’s, bachelor’s or graduate degree from an accredited community college, college or university after 2007.
Participating in the Maine Opportunity Loan program is simple. Residents can take advantage of the Student Loan Repayment Program by completing and submitting the Educational Opportunity Tax Credit Worksheet when filing their annual income tax return. In a nutshell, the tax credit allows qualifying residents to claim a refundable credit for eligible student loan payments made in a year from their state income taxes. There is an annual cap of $2,500 and a lifetime cap of $25,000. The stipulations of the program vary based on your student loans and degree type, and the incentive is most generous for those with degrees in the STEM fields (Science, Technology, Engineering or Math).
Why Maine Is Attracting Younger Workers
So why exactly is Maine trying to woo recent graduates? According to Consumer Affairs, Maine is among the states with the highest ratio of residents aged 65 and older. And, Maine has a median age of 44.9, according to the U.S. Census Bureau. As boomers begin retiring, the state recognizes it needs to recruit younger workers to help fill job openings.
State vs. Federal Programs
Maine’s program could be even more enticing given that the more widely known national Public Service Loan Forgiveness (PSLF) has faced uncertainty in recent months and is known for rejecting a large number of applicants. In 2017, only 96 borrowers out of 28,000 who applied for PSLF had their debt forgiven by the program, which promised student loan forgiveness to those who worked in public service sectors (such as nurses, police officers, and first responders) for 10 years while making loan repayments.
State-level student loan forgiveness programs like Maine’s certainly represent a smaller scale of assistance than the federal program, but ultimately might be more effective and accessible.
More Reasons to Move to Maine (Beyond Loan Forgiveness)
There are many great reasons to move to Maine, in addition to this generous student loan assistance program. Maine’s known for its access to Acadia National Park’s stunning scenery, an unexpected wine region and a delicious dining scene full of locally sourced food. And, to sweeten the deal? Maine has a long-held reputation for being committed to female-friendly workplaces.
So, recent graduates…will you consider moving to Maine if they help pick up your student loan tab? What if they throw in a slice of blueberry pie?